Answer
a. Cash received from lenders is = liability (L)
b. Cash received from customers is = revenue (R)
c. Cash paid for new equipment is = expense (E)
d. Cash dividends paid is = stockholders' equity
e. Cash paid to suppliers is = expense (E)
f. Cash balance 1/1/10 is = asset (A)
Work Step by Step
a. Since the company stated in the question are receiving a loan against their credit or other assets, it is a liability for the company to borrow funds from lenders and banks.
b. The cash that the company produces is not from an existing loan but a customer using or purchasing their goods and services, thus this transaction would be considered revenue for the company.
c. The company at hand is using its cash reserve to purchase equipment to further expand their capabilities, thus this would be an expense for the company.
d. The company are paying their shareholders quarterly dividends for holding onto their equity and to keep the shareholders vesting interest the company would pay a certain amount per share held by the shareholders
e. Using the same logic as the previous question, the company at hand is using its cash reserve to purchase equipment to further expand their capabilities, thus this would be an expense for the company.
f. This figure represents the cash reserve, liquid cash, and other assets in their balance, which means that whatever the company fully owns without being in debt would be an asset to the company, do not confuse this with revenue as the question states that it represents the company's assets already at hand, so they are not receiving cash from customers or other businesses.
